Analyst Update: Newmont Mining Corp, The Kroger Co, and T2 Biosystems Inc

Analysts revised their ratings and price targets on Newmont Mining Corp (NEM), The Kroger Co (KR), and T2 Biosystems Inc (TTOO)

Kirra Fedyszyn
Aug 2, 2016 at 2:21 PM
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Analysts are weighing in on gold stock Newmont Mining Corp (NYSE:NEM), grocery chain The Kroger Co (NYSE:KR), and diagnostics specialist T2 Biosystems Inc (NASDAQ:TTOO)Here's a quick roundup of today's brokerage notes on NEM, KR, and TTOO. 

  • NEM is 3.4% higher at $45.65, and fresh off a new three-year high of $45.71, after Citigroup initiated coverage on the stock with a bullish "buy" rating and a $51 price target. (By contrast, Barclays assumed coverage with a tepid "equal weight" opinion.) This could be the start of some long overdue love from the analyst crowd, as two-thirds of the brokerage firms following Newmont Mining Corp rate it just a "hold." Options traders have taken a downbeat approach, as well. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 1.65 sits 3 percentage points from an annual high. This widespread lack of optimism is rather surprising, considering NEM has been on a steady uptrend since January, adding 154% so far in 2016.
  • KR received a downgrade to "market perform" at BMO, which also lowered its price target on the stock to $35 from $45. This is a change of pace for The Kroger Co, which sports 11 "buy" or better ratings, versus just five "hold" or worse assessments. But the shares have shed 21% so far this year after hitting an all-time high at the end of December, and are off 3.3% this afternoon at $32.88. In fact, the stock has given back nearly 10% in the past week alone, losing a longer-term foothold at the $36 level. Meanwhile, near-term options traders have been unusually call-skewed toward KR, per its Schaeffer's put/call open interest ratio (SOIR) of 0.39 -- lower than 92% of all readings taken in the past year.
  • TTOO reported a wider-than-predicted second-quarter loss last night, earning the stock price-target cuts at Goldman Sachs and Canaccord Genuity, to $6 and $9, respectively. The shares have plummeted 14.4% to $6.03, bringing their year-over-year losses to a painful 58%. Today's sharp slide has T2 Biosystems Inc seated on the short-sale restricted list, but short interest on the stock was already sitting at record-high levels, with roughly 1.5 million shares sold short, or 6% of TTOO's total float. These bearish bets have been on the rise, too, climbing by 37% during the last two reporting periods. At the stock's typical daily pace of trading, it would take six sessions to cover all of its shorted shares.
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